Obama wants action on Chinese auto parts subsidies

Published: September 18, 2012 6:00 am ET

Related to this story

Topics Public Policy, Automotive

WASHINGTON (Sept. 18, 8:30 a.m. ET) — The Obama administration has requested dispute settlement consultations with China at the World Trade Organization over China’s subsidies for its auto and auto parts exporters.

In addition, the administration asked WTO to establish a dispute settlement panel to address China’s imposition of antidumping and countervailing duties against $3 billion worth of U.S.-produced autos exported to China.

The Alliance for American Manufacturing, a coalition of various U.S. manufacturers and the United Steelworkers union, praised the administration’s actions.

“President Obama is delivering a major boost to our nation’s automotive sector workers and businesses today by holding China accountable for its cheating,” said AAM Executive Director Scott Paul.

Under its “export base” subsidy program, China provides massive subsidies to auto and auto parts producers in designated regions that meet export performance requirements, according to a press release from the Office of the U.S. Trade Representative.

Based on public documents, USTR said, China paid at least $1 billion to auto and auto parts makers in export bases between 2009 and 2011.

Ron Kirk, U.S. trade representative, credited the Obama administration’s newly created Interagency Trade Enforcement Center for providing crucial investigative and analytical resources to help uncover the facts about export base subsidies.

Export subsidies, according to Kirk, are strictly forbidden under WTO rules because they severely distort international trade.

“The Obama administration is committed to protecting the rights of nearly 800,000 American workers in our $350 billion auto and auto parts manufacturing sector,” Kirk said. “We insist upon having a level playing field on which our world-class manufacturers can compete.”

As for the Chinese duties on U.S. cars, the Obama administration first requested formal dispute settlement consultations with China in June, USTR said. Those talks failed, so the U.S. is taking the further step of requesting a WTO dispute settlement panel.

“The facts in the case are indisputable,” the AAM’s Paul said. “China is subsidizing its auto parts sector, blocking our exports, and causing significant harm to workers and businesses in our nation.”

Later this month, three years’ worth of high tariffs against Chinese passenger and light truck tires imported to the U.S. are scheduled to end. The Obama administration imposed the tariffs in September 2009 under Section 421 of the Trade Act, after a petition filed in April 2009 by the USW.


Comments

Obama wants action on Chinese auto parts subsidies

Published: September 18, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

California Assembly passes plastic bag ban

August 28, 2014 3:07 pm ET

In its second attempt of the week, the California Assembly approved a bill that would ban single-use plastic bags statewide, the first such ban in...    More

Image

DuPont fined for 2010 chemicals release

August 28, 2014 1:37 pm ET

DuPont Co. has been fined almost $1.3 million for the release of several chemicals — including plastics feedstock phosgene — at its plant ...    More

Image

Concours adding equipment as mold making business booms in Mexico

August 28, 2014 2:05 pm ET

Concours Mold Inc. is heading for a 50 percent increase in sales in Mexico this year after a $4 million upgrade of its plant in Huejotzingo, in the...    More

Image

Pregis, Sealed Air settle film-foam patent dispute out of court

August 28, 2014 1:01 pm ET

A couple of packaging companies are settling their patent fight over film-foam underlayment.    More

Image

Truce? ACC, US Green Building Council agree to work together on LEED

August 28, 2014 12:08 pm ET

The American Chemistry Council (ACC) and the U.S. Green Building Council (USGBC) announced Aug. 27 that they will be working together on a new initiat...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events